diff --git a/babel.config.js b/babel.config.js
index d42384898c2a..750ebbfc22cf 100644
--- a/babel.config.js
+++ b/babel.config.js
@@ -39,7 +39,7 @@ module.exports = {
         ].filter(Boolean),
       },
     ],
-    '@babel/preset-react',
+    ['@babel/preset-react', { runtime: 'automatic' }],
     /**
      *  TODO(pc): w/ '@babel/plugin-transform-typescript' in plugins now, is '@babel/typescript' preset still needed?
      *
diff --git a/packages/internal/src/__tests__/nestedPages.test.ts b/packages/internal/src/__tests__/nestedPages.test.ts
index fc07c3be4dee..a66c2b7128f2 100644
--- a/packages/internal/src/__tests__/nestedPages.test.ts
+++ b/packages/internal/src/__tests__/nestedPages.test.ts
@@ -1,5 +1,7 @@
 import path from 'path'
 
+import { expect } from '@jest/globals'
+
 import { getPaths } from '@redwoodjs/project-config'
 
 import { prebuildWebFile } from '../build/babel/web'
@@ -7,9 +9,18 @@ import { cleanWebBuild } from '../build/web'
 
 const FIXTURE_PATH = path.join(__dirname, 'fixtures/nestedPages')
 
+function normalizeStr(str: string) {
+  return str
+    .split('\n')
+    .map((line) => line.trim())
+    .join('\n')
+    .trim()
+}
+
 describe('User specified imports, with static imports', () => {
   let outputWithStaticImports: string | null | undefined
   let outputNoStaticImports: string | null | undefined
+
   beforeEach(() => {
     process.env.RWJS_CWD = FIXTURE_PATH
     cleanWebBuild()
@@ -21,16 +32,18 @@ describe('User specified imports, with static imports', () => {
 
   beforeAll(() => {
     process.env.RWJS_CWD = FIXTURE_PATH
-
     const routesFile = getPaths().web.routes
+
     outputWithStaticImports = prebuildWebFile(routesFile, {
       prerender: true,
       forJest: true,
     })?.code
+    outputWithStaticImports &&= normalizeStr(outputWithStaticImports)
 
     outputNoStaticImports = prebuildWebFile(routesFile, {
       forJest: true,
     })?.code
+    outputNoStaticImports &&= normalizeStr(outputNoStaticImports)
   })
 
   it('Imports layouts correctly', () => {
@@ -54,19 +67,23 @@ describe('User specified imports, with static imports', () => {
     describe('static prerender imports', () => {
       it('Adds loaders for non-nested pages', () => {
         expect(outputWithStaticImports).toContain(
-          `const LoginPage = {
-  name: "LoginPage",
-  prerenderLoader: name => require("./pages/LoginPage/LoginPage"),
-  LazyComponent: (0, _react.lazy)(() => import( /* webpackChunkName: "LoginPage" */"./pages/LoginPage/LoginPage"))
-}`
+          normalizeStr(
+            `const LoginPage = {
+              name: "LoginPage",
+              prerenderLoader: name => require("./pages/LoginPage/LoginPage"),
+              LazyComponent: (0, _react.lazy)(() => import( /* webpackChunkName: "LoginPage" */"./pages/LoginPage/LoginPage"))
+            }`
+          )
         )
 
         expect(outputWithStaticImports).toContain(
-          `const HomePage = {
-  name: "HomePage",
-  prerenderLoader: name => require("./pages/HomePage/HomePage"),
-  LazyComponent: (0, _react.lazy)(() => import( /* webpackChunkName: "HomePage" */"./pages/HomePage/HomePage"))
-};`
+          normalizeStr(
+            `const HomePage = {
+              name: "HomePage",
+              prerenderLoader: name => require("./pages/HomePage/HomePage"),
+              LazyComponent: (0, _react.lazy)(() => import( /* webpackChunkName: "HomePage" */"./pages/HomePage/HomePage"))
+            };`
+          )
         )
       })
     })
@@ -74,19 +91,23 @@ describe('User specified imports, with static imports', () => {
     describe('dynamic build imports', () => {
       it('Adds loaders for non-nested pages with __webpack_require__ and require.resolveWeak in prerenderLoader to not bundle the pages', () => {
         expect(outputNoStaticImports).toContain(
-          `const LoginPage = {
-  name: "LoginPage",
-  prerenderLoader: name => __webpack_require__(require.resolveWeak("./pages/LoginPage/LoginPage")),
-  LazyComponent: (0, _react.lazy)(() => import( /* webpackChunkName: "LoginPage" */"./pages/LoginPage/LoginPage"))
-}`
+          normalizeStr(
+            `const LoginPage = {
+              name: "LoginPage",
+              prerenderLoader: name => __webpack_require__(require.resolveWeak("./pages/LoginPage/LoginPage")),
+              LazyComponent: (0, _react.lazy)(() => import( /* webpackChunkName: "LoginPage" */"./pages/LoginPage/LoginPage"))
+            }`
+          )
         )
 
         expect(outputNoStaticImports).toContain(
-          `const HomePage = {
-  name: "HomePage",
-  prerenderLoader: name => __webpack_require__(require.resolveWeak("./pages/HomePage/HomePage")),
-  LazyComponent: (0, _react.lazy)(() => import( /* webpackChunkName: "HomePage" */"./pages/HomePage/HomePage"))
-}`
+          normalizeStr(
+            `const HomePage = {
+              name: "HomePage",
+              prerenderLoader: name => __webpack_require__(require.resolveWeak("./pages/HomePage/HomePage")),
+              LazyComponent: (0, _react.lazy)(() => import( /* webpackChunkName: "HomePage" */"./pages/HomePage/HomePage"))
+            }`
+          )
         )
       })
     })
@@ -97,22 +118,26 @@ describe('User specified imports, with static imports', () => {
       it('Uses the user specified name for nested page', () => {
         // Import statement: import NewJobPage from 'src/pages/Jobs/NewJobPage'
         expect(outputWithStaticImports).toContain(
-          `const NewJobPage = {
-  name: "NewJobPage",
-  prerenderLoader: name => require("./pages/Jobs/NewJobPage/NewJobPage"),
-  LazyComponent: (0, _react.lazy)(() => import( /* webpackChunkName: "NewJobPage" */"./pages/Jobs/NewJobPage/NewJobPage"))
-}`
+          normalizeStr(
+            `const NewJobPage = {
+              name: "NewJobPage",
+              prerenderLoader: name => require("./pages/Jobs/NewJobPage/NewJobPage"),
+              LazyComponent: (0, _react.lazy)(() => import( /* webpackChunkName: "NewJobPage" */"./pages/Jobs/NewJobPage/NewJobPage"))
+            }`
+          )
         )
       })
 
       it('Uses the user specified custom default export import name for nested page', () => {
         // Import statement: import BazingaJobProfilePageWithFunnyName from 'src/pages/Jobs/JobProfilePage'
         expect(outputWithStaticImports).toContain(
-          `const BazingaJobProfilePageWithFunnyName = {
-  name: "BazingaJobProfilePageWithFunnyName",
-  prerenderLoader: name => require("./pages/Jobs/JobProfilePage/JobProfilePage"),
-  LazyComponent: (0, _react.lazy)(() => import( /* webpackChunkName: "BazingaJobProfilePageWithFunnyName" */"./pages/Jobs/JobProfilePage/JobProfilePage"))
-}`
+          normalizeStr(
+            `const BazingaJobProfilePageWithFunnyName = {
+              name: "BazingaJobProfilePageWithFunnyName",
+              prerenderLoader: name => require("./pages/Jobs/JobProfilePage/JobProfilePage"),
+              LazyComponent: (0, _react.lazy)(() => import( /* webpackChunkName: "BazingaJobProfilePageWithFunnyName" */"./pages/Jobs/JobProfilePage/JobProfilePage"))
+            }`
+          )
         )
       })
 
@@ -128,12 +153,14 @@ describe('User specified imports, with static imports', () => {
 
       it('Keeps using the user specified name when generating React component', () => {
         // Generate react component still uses the user specified name
-        expect(outputWithStaticImports)
-          .toContain(`.createElement(_router.Route, {
-    path: "/job-profiles/{id:Int}",
-    page: BazingaJobProfilePageWithFunnyName,
-    name: "jobProfile"
-  })`)
+        expect(outputWithStaticImports).toContain(
+          normalizeStr(
+            `}), /*#__PURE__*/(0, _jsxRuntime.jsx)(_router.Route, {
+              path: "/job-profiles/{id:Int}",
+              page: BazingaJobProfilePageWithFunnyName,
+              name: "jobProfile"`
+          )
+        )
       })
     })
 
@@ -142,38 +169,63 @@ describe('User specified imports, with static imports', () => {
         // Explicit import uses the specified import
         // Has statement: import BazingaJobProfilePageWithFunnyName from 'src/pages/Jobs/JobProfilePage'
         // The name of the import is not important without static imports
-        expect(outputNoStaticImports).toContain(`.createElement(_router.Route, {
-    path: "/job-profiles/{id:Int}",
-    page: _JobProfilePage["default"],
-    name: "jobProfile"
-  })`)
+        expect(outputNoStaticImports).toContain(
+          normalizeStr(
+            `}), /*#__PURE__*/(0, _jsxRuntime.jsx)(_router.Route, {
+              path: "/job-profiles/{id:Int}",
+              page: _JobProfilePage["default"],
+              name: "jobProfile"
+            })`
+          )
+        )
       })
 
       it("Uses the LazyComponent for a page that isn't imported", () => {
-        expect(outputNoStaticImports).toContain(`const HomePage = {
-  name: "HomePage",
-  prerenderLoader: name => __webpack_require__(require.resolveWeak("./pages/HomePage/HomePage")),
-  LazyComponent: (0, _react.lazy)(() => import( /* webpackChunkName: "HomePage" */"./pages/HomePage/HomePage"))
-}`)
-        expect(outputNoStaticImports).toContain(`.createElement(_router.Route, {
-    path: "/",
-    page: HomePage,
-    name: "home"
-  })`)
+        expect(outputNoStaticImports).toContain(
+          normalizeStr(
+            `const HomePage = {
+              name: "HomePage",
+              prerenderLoader: name => __webpack_require__(require.resolveWeak("./pages/HomePage/HomePage")),
+              LazyComponent: (0, _react.lazy)(() => import( /* webpackChunkName: "HomePage" */"./pages/HomePage/HomePage"))
+            }`
+          )
+        )
+
+        expect(outputNoStaticImports).toContain(
+          normalizeStr(
+            `}), /*#__PURE__*/(0, _jsxRuntime.jsx)(_router.Route, {
+              path: "/",
+              page: HomePage,
+              name: "home"
+            })`
+          )
+        )
       })
 
       it('Should NOT add a LazyComponent for pages that have been explicitly loaded', () => {
-        expect(outputNoStaticImports).not.toContain(`const JobsJobPage = {
-  name: "JobsJobPage"`)
+        expect(outputNoStaticImports).not.toContain(
+          normalizeStr(
+            `const JobsJobPage = {
+              name: "JobsJobPage"`
+          )
+        )
 
-        expect(outputNoStaticImports).not.toContain(`const JobsNewJobPage = {
-  name: "JobsNewJobPage"`)
+        expect(outputNoStaticImports).not.toContain(
+          normalizeStr(
+            `const JobsNewJobPage = {
+              name: "JobsNewJobPage"`
+          )
+        )
 
-        expect(outputNoStaticImports).toContain(`.createElement(_router.Route, {
-    path: "/jobs",
-    page: _JobsPage["default"],
-    name: "jobs"
-  })`)
+        expect(outputNoStaticImports).toContain(
+          normalizeStr(
+            `}), /*#__PURE__*/(0, _jsxRuntime.jsx)(_router.Route, {
+              path: "/jobs",
+              page: _JobsPage["default"],
+              name: "jobs"
+            })`
+          )
+        )
       })
     })
   })
@@ -183,20 +235,28 @@ describe('User specified imports, with static imports', () => {
 
     expect(outputWithStaticImports).toContain('var _EditJobPage = require("')
 
-    expect(outputWithStaticImports).toContain(`const EditJobPage = {
-  name: "EditJobPage",
-  prerenderLoader: name => require("./pages/Jobs/EditJobPage/EditJobPage"),
-  LazyComponent: (0, _react.lazy)(() => import( /* webpackChunkName: "EditJobPage" */"./pages/Jobs/EditJobPage/EditJobPage"))
-}`)
+    expect(outputWithStaticImports).toContain(
+      normalizeStr(
+        `const EditJobPage = {
+          name: "EditJobPage",
+          prerenderLoader: name => require("./pages/Jobs/EditJobPage/EditJobPage"),
+          LazyComponent: (0, _react.lazy)(() => import( /* webpackChunkName: "EditJobPage" */"./pages/Jobs/EditJobPage/EditJobPage"))
+        }`
+      )
+    )
 
     expect(outputNoStaticImports).toContain(
       'var _EditJobPage = _interopRequireWildcard('
     )
 
-    expect(outputNoStaticImports).toContain(`.createElement(_router.Route, {
-    path: "/jobs/{id:Int}/edit",
-    page: _EditJobPage["default"],
-    name: "editJob"`)
+    expect(outputNoStaticImports).toContain(
+      normalizeStr(
+        `}), /*#__PURE__*/(0, _jsxRuntime.jsx)(_router.Route, {
+        path: "/jobs/{id:Int}/edit",
+        page: _EditJobPage["default"],
+        name: "editJob"`
+      )
+    )
 
     // Should not generate a loader, because page was explicitly imported
     expect(outputNoStaticImports).not.toMatch(
diff --git a/packages/internal/src/build/babel/web.ts b/packages/internal/src/build/babel/web.ts
index 73edf3a91800..568dfb2f83fb 100644
--- a/packages/internal/src/build/babel/web.ts
+++ b/packages/internal/src/build/babel/web.ts
@@ -133,7 +133,7 @@ export const getWebSideBabelPresets = (options: Flags) => {
     return []
   }
 
-  let reactPresetConfig = undefined
+  let reactPresetConfig: babel.PluginItem = { runtime: 'automatic' }
 
   // This is a special case, where @babel/preset-react needs config
   // And using extends doesn't work